Account-Based Pension Calculator
Calculate minimum pension drawdown amounts and project your account-based pension balance over time. Includes age-based percentages.
Disclaimer
This calculator provides estimates for general information purposes only. Results should not be relied upon as professional financial, tax, or legal advice. Tax rates and thresholds are based on publicly available ATO data and may change. Always consult a qualified tax agent or financial adviser for advice specific to your circumstances.
Frequently Asked Questions
What is an account-based pension?
What is the minimum pension drawdown?
Are account-based pensions tax-free?
How long will my super last in pension phase?
What is Account-Based Pension?
An account-based pension (sometimes called an 'allocated pension') converts your accumulated super into a regular income stream in retirement. Your balance remains invested and continues to earn returns tax-free in pension phase. You set the withdrawal amount, subject to government minimum drawdown percentages.
How this calculator works
This calculator projects your account-based pension balance over 30 years based on your starting balance, age, expected investment return, and chosen withdrawal amount (or government minimum). Min drawdown % varies by age: 4% under 65, 5% (65-74), 6% (75-79), 7% (80-84), 9% (85-89), 11% (90-94), 14% (95+). The projection shows when funds may deplete or final balance after 30 years.
Tax Treatment in Pension Phase
If you're 60+, withdrawals from a taxed super source (most super) are entirely tax-free. Investment earnings inside the pension are also tax-free (vs 15% in accumulation). Below 60, withdrawals may be partially taxable. The Transfer Balance Cap ($2.0M for 2025-26) limits how much you can move into pension phase. Excess above the cap stays in accumulation (15% tax on earnings).
Choosing Your Withdrawal Amount
You can withdraw as much as you want (above the minimum). Common strategies: (1) draw only the minimum to preserve capital and benefit from tax-free earnings; (2) withdraw a level real income (e.g. $50K/yr indexed for inflation) to maintain lifestyle; (3) use the '4% rule' — withdraw 4% of your starting balance, indexed for inflation. Each has different depletion timelines.
Minimum Drawdown Rules
The minimum % is calculated on your balance at 1 July each year. The amount is rounded UP to the nearest $10. In your commencement year, it's pro-rated based on days remaining. If you commence in June, no minimum applies for that year. Failure to meet the minimum can result in the pension being treated as if it never started — losing the tax exemption.
Reversionary Pensions
On the death of the pension owner, the pension can revert to a beneficiary (usually a spouse). The minimum drawdown % is then based on the beneficiary's age, not the deceased's. This is a tax-effective estate planning tool.
Combining Multiple Income Sources
Most retirees combine an account-based pension with the Age Pension (means-tested), other investments, and possibly part-time work. The Age Pension assets test treats account-based pensions as assessable assets; the income test deems earnings (currently 0.25% on first ~$60K, 2.25% above). Modelling these together is critical for retirement planning.
Updated for the 2025-26 financial year (1 July 2025 to 30 June 2026).
All calculations are performed in your browser — your data never leaves your device. Results are for general guidance only and should not be considered professional financial advice.
Built and maintained by Konstantin Iakovlev. Data sourced from the ATO and official Australian government sources.